The U.S. has finally reached its Debt Ceiling, and in theory, they should not be able to borrow any more money, much like you or I might be if we reached the credit limit on our Credit Cards. The other similarity is that we can simply call the Credit Card company and ask for our Credit Limit to be raised, and they might allow us to go farther into debt, and this might happen for the U.S. as well, but that remains to be seen. Remember we talked about the U.S. National Debt Video on Saturday.
The American Debt is now $14 Trillion dollars (approximately), wonder what type of American Express Card you might get with that kind of credit limit, Diamond encrusted Platinum?
“I’m sorry Mr. Obama, your order for 10 Stealth Fighters can’t go through, your Card has been refused…“, is that possible? Not really, but it is a fun scenario to think about.
Does Canada have a National Debt? You damn right we do! It’s a poop-load!
No I don’t view this as the gospel truth, but it is close. So if Canada’s Debt is $600B it seems like a lot less than the U.S., but then again, we are about 1/10 the size of the U.S. in terms of population, and we aren’t funding a bunch of wars either.
We were up until about 3 years ago actually paying back the debt, but that kind of went out the window with the Debt Crisis.
Who holds Canada’s Debt? You do, I do, and mostly our Parents do, in terms of Treasury Bills, and Canada Savings Bonds. Not sure the exact percentages, but the debt is mostly held by Canadians, so defaulting on the Debt might not be a good idea (unless making our Senior Citizens eat low ash Cat Food is in the Government’s plans). The estimates I have seen is that 10-25% of our debt is held by foreigners, but that might increase, given Canada’s good standing in the International Monetary community.